Plant Company acquired of the common stock of Star Company January 1, year one, for The consideration given was proportional to Star's fair value. On that date, Star had the following trial balance: account Additional paid in capital debit credit $100,000 Building (12-year life) Common stock $250,000 170,000 Current assets 170,000 Equipment (6-yr life) 160,000 Land 110,000 Liabilities (due in 4 years) 300,000 Retained earnings 1/year 1 120,000 Totals $690,000 $690,000 During year one, Star reported net income of During year one, Star paid dividends of During year two, Star reported net income of During year two, Star paid dividends of On January 1, year one, fair values of certain Star's account were: Land Building Equipment $122,000 $265,000 $172,000 There was no impairment of any goodwill arising from the acquisition. Please indicate clearly which method you choose for Plant to use to account for its acquisition of Star Company. Part A. Use the data for the Plant Company acquisition of the Star Company to prepare the consolidation journal entries for December 31 of year one. For clarity, use the entry labels like S, A, I and so on. Part B. Use the data for the Plant Company acquisition of the Star Company to prepare the consolidation journal entries for December 31 of year two. For clarity, use the entry labels like S, A, I and so on. 75% $450,000 $50,000 $30,000 $80,000 $40,000